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The Berkeley Group Holdings plc (BKG) Fair Value & Analysis

Consumer Cyclical · GB · Market cap 3.1B GBX · ISIN GB00BLJNXL82

What is The Berkeley Group Holdings plc really worth?

TB The Berkeley Group Holdings plc BKG · LSE
Price£34.56
Fair Value£57.01
Upside+65.0%
Quality66/100

A solid business, trading 39% below our fair value of £57.01.

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Strengths

Solidly profitable · 13.4% net margin
Low debt · generates free cash flow
Ranks above peers (10/15)

Risks

!Weak Growth (revenue 5y +1.6 %/yr)
!Moderate moat 53/100
Evidence: High Range £38.28 – £77.22

Fair value as of: Aug 13, 2026

From 25 valuation models · updated 22 days ago

Fair value updated Aug 13, 2026, revised from £60.16 to £57.01 (−5.2%) since Jul 13, 2026. Share price −3.6% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price is below even our cautious bear case (£38.28). The market is more pessimistic than our downside scenario.
  • Solid quality (66/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (£38.28 to £77.22) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

£52.81 £29.96 Fair Value £57.01 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range £29.96 – £52.81 · fair‑value band £38.28 – £77.22 · the £34.56 price screens below the £57.01 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

The Berkeley Group Holdings plc (BKG) currently trades at £34.56, while our model-based Fair Value estimate is £57.01, implying the stock looks roughly 39.4% undervalued today. The Quality Score stands at 66/100 (solid quality), in the Consumer Cyclical sector. Bull case: the Growth Earnings group reads highest at a median of £69.06 per share, and 21 of the 25 models we run sit above the £34.56 price. Bear case: the Earnings-Based group reads lowest at £26.03, and 4 of the 25 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, The Berkeley Group Holdings plc generated revenue of £2.4B at a net margin of 15.3%. Revenue declined 7.8% year over year. It earns a return on equity of 10.3%. The balance sheet holds a net cash position of £359M. Fundamentals as of Aug 13, 2026

Our scenario range runs from £38.28 (bear case) to £77.22 (bull case); at £34.56, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Consumer Cyclical peers we cover trades at 45% fair-value upside, at 65%, BKG screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2026 figures, and about 4 months have passed since. In that time the company retained roughly £1.28 per share, which is 2.2 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF best evidence £40.36 £61.05 £92.10 80
Growth DCF £40.71 £58.62 £83.68 78
Residual Income £33.42 £36.18 £42.07 76
All 25 models by family
DCF Models
FCF DCF best evidence £40.36 £61.05 £92.10 80
5Y Revenue Exit £30.20 £44.01 £61.46 73
5Y EBITDA Exit £42.10 £66.68 £95.60 75
5Y P/E Exit £49.60 £80.96 £114.41 70
10Y Revenue Exit £32.96 £46.43 £64.37 67
10Y EBITDA Exit £41.08 £61.96 £90.26 68
10Y P/E Exit £45.79 £71.75 £104.52 63
Earnings-Based
Graham-Dodd £23.50 £79.63 £106.76 64
Lynch FV £18.22 £26.03 £33.84 61
PEG = 1.0 £18.22 £26.03 £33.84 57
EPV £34.72 £39.61 £43.83 74
Dividend Discount
Gordon GGM £24.01 £47.85 £72.46 67
DDM Multi-Stage £24.01 £40.57 £50.51 67
Multiples
P/E Multiple £57.03 £76.04 £95.05 63
P/S Multiple £23.29 £31.06 £38.82 58
P/B Multiple £44.07 £58.76 £73.45 55
EV/EBIT £69.25 £91.09 £112.92 66
EV/EBITDA £47.74 £62.40 £77.07 67
EV/Revenue £25.49 £34.81 £44.13 54
Asset-Based
NCAV (Graham) £19.77 £26.49 £39.53 54
Growth DCF
Growth DCF £40.71 £58.62 £83.68 78
Rev-Margin DCF £30.20 £44.26 £60.90 73
Economic Profit
Residual Income £33.42 £36.18 £42.07 76
ROIC Compounder £34.72 £39.66 £48.64 72
Growth Earnings
Growth-Adj P/E £48.34 £69.06 £89.77 67

Widest divergence: Growth Earnings (£69.06) versus Earnings-Based (£26.03). Highest evidence: FCF DCF (80).

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Key figures & financial health

P/E ratio 10.4
P/S ratio 1.39 P/E × margin
EPS (TTM) £3.31 price ÷ EPS = P/E 10.4
Dividend yield 8.0% payout 83.3%
Net margin 13.4% FY2026
Return on equity 8.8% TTM
More key figures
Profitability
Return on assets (EBIT) 7.3% avg 5y
Operating margin 16.8% TTM
Growth
Revenue (TTM) £2.4B TTM
Revenue growth (YoY) −7.8% 3y avg −2.2%
EPS growth (YoY) −1.3%
Balance sheet & cash flow
Free cash flow 305M GBX FY2026
Net cash 359M GBX FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 66/100

Of which business quality 64 · Market factors (momentum, volatility) 41

Profitability 35
Margins and returns on capital today
Quality Growth 28
Are margins and returns improving?
Cashflow 60
Earnings quality: real cash, not paper profit
Fin. Strength 80
Balance sheet, leverage, solvency risk
Investment 95
Disciplined investing over empire-building
Low Volatility 58
Calm price path (market factor)
Momentum 34
Price trend over the last 3–12 months (market factor)
52W Momentum 33
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

The Berkeley Group Holdings plc, together with its subsidiaries, builds homes and neighbourhoods in the United Kingdom. The company engages in the residential-led and mixed-use property development and ancillary activities; and land selling activities. It operates under the Berkeley, St Edward, St George, St James, St Joseph, and St William brands.

Full company description

The Berkeley Group Holdings plc, together with its subsidiaries, builds homes and neighbourhoods in the United Kingdom. The company engages in the residential-led and mixed-use property development and ancillary activities; and land selling activities. It operates under the Berkeley, St Edward, St George, St James, St Joseph, and St William brands. The Berkeley Group Holdings plc was founded in 1976 and is headquartered in Cobham, the United Kingdom.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

The Berkeley Group Holdings plc reported revenue of 2.4B GBX in FY2026 versus 2.3B GBX in FY2022, a compound +0.4%/yr. Reported net income was 318M GBX in FY2026, compounding −9.9%/yr from FY2022.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2026)
£2.4B
Latest YoY
−4.2%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−2.2%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+1.6%
Avg. revenue growth/yr (40Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+11.4%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+6.3% (−1.7 + 8.0)
Revenue +0.4%/yr
FY22 2.3B GBX
FY23 2.6B GBX
FY24 2.5B GBX
FY25 2.5B GBX
FY26 2.4B GBX
Net income −9.9%/yr
FY22 482M GBX
FY23 466M GBX
FY24 398M GBX
FY25 382M GBX
FY26 318M GBX
Character of growth · EPS growth decomposed (2015-2026) −0.1 % p.a.
Revenue per share +4.0 %

of which total revenue +0.7 % · buybacks/dilution +3.3 %

EBIT margin −3.1 %
Tax rate −1.0 %
Residual (interest, one-offs) +0.2 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "The Berkeley Group Holdings plc Fair Value". https://www.fairvalue-calculator.com/stock/BKG

Peer Group

Residential Construction · 65 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 66 · Top 25%
Fair Value upside +65% · Top 25%
Return on equity (TTM) 9% · Above median
Return on assets 4% · Above median
Net margin (TTM) 13% · Top 25%
Operating margin (TTM) 17% · Top 25%
Revenue growth 0% · Above median
Dividend yield (TTM) 8.0% · Top 25%
Debt / equity 0.19× · Lower than median

Valuation Multiples vs Residential Construction median · lower = cheaper

P/E (TTM) 10.4× · Cheaper than median
P/B 1.14× · Pricier than median
P/S (TTM) 1.73× · Pricier than 75% of peers
P/FCF 13.5× · Pricier than median
EV/EBITDA 8.4× · Pricier than median
PEG 5.32× · Pricier than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 54
FUTURE0 · sector 0
PAST35 · sector 32
HEALTH91 · sector 88
DIVIDEND100 · sector 66

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Residential Construction stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
D.R. Horton, Inc DHI $145.26 $213.23 +47%
PulteGroup, Inc PHM $126.75 $190.17 +50%
Lennar Corporation LEN $85.11 $116.80 +37%
NVR, Inc NVR $6,396 $7,821 +22%
Toll Brothers, Inc TOL $146.22 $221.32 +51%
Taylor Morrison Home Corporation TMHC $72.45 $136.88 +89%
Installed Building Products, Inc IBP $237.70 $209.51 −12%
Meritage Homes Corporation MTH $71.06 $102.94 +45%
Champion Homes, Inc SKY $93.88 $75.12 −20%
Cavco Industries, Inc CVCO $598.38 $421.10 −30%

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Frequently asked questions

Is The Berkeley Group Holdings plc (BKG) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of £57.01 versus a price of £34.56, about +65% upside (undervalued).
What is the fair value of BKG?
Our model-based fair value for The Berkeley Group Holdings plc is £57.01 (as of Aug 13, 2026), built from audited fundamentals. The current price: £34.56.
What is the quality score of BKG?
The Berkeley Group Holdings plc has a Quality Score of 66/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of The Berkeley Group Holdings plc (BKG)?
The Berkeley Group Holdings plc reported trailing-twelve-month revenue of about £2.4B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of BKG?
The net profit margin of The Berkeley Group Holdings plc is about 15.3%, meaning it keeps roughly 15.3% of revenue as net income. Based on the latest reported figures.
Does The Berkeley Group Holdings plc pay a dividend?
The Berkeley Group Holdings plc currently shows a dividend yield of about 7.98% relative to its recent price (as of Aug 13, 2026).
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